Group Critical Illness Insurance – Is There a More Valuable Gift For Your Employees?

Plan Administration Checklist
February 10, 2020

Group Critical Illness Insurance – Is There a More Valuable Gift For Your Employees?

You probably know the statistics by now, and they are sobering:

1 in 2 Canadians will develop cancer in their lifetime

90% of heart attack patients and 85% of stroke patients will survive the event

Canada has the highest rate of MS in the world, with 1 out of 385 people living with the disease.

A 40 year-old has a 400% higher chance of being diagnosed with cancer or suffering a heart attack, than that same person dying prior to Age 65.

Good News or Bad News?

The good news is that, thanks to medical advances, many Canadians will survive a critical illness diagnosis. The bad news is that the medical and associated costs will likely cause stress and financial hardship.

As an employer, you have an opportunity to greatly boost the value of your benefit plan by providing coverage for Critical Illness. Group Critical Illness Insurance provides your employees (and possibly their dependents) with a tax-free, lump sum payment upon diagnosis, and there are no restrictions on how a person can use the money.

The main advantage of Group Critical Illness vs. individual plans is the ability for employees to be covered without having to provide any medical evidence to the insurance company. The second big advantage is the relatively lower cost. However, when choosing a Group Critical Illness plan for your company, price is rarely the most important factor. The most “Critical” questions to consider are:

What are the Guaranteed Issue Limits?

Generally, the more employees in your company, the higher the amount that can be offered without a medical questionnaire.

What is the length of the Pre-Existing Conditions clause?

Is it 24 months? 12 months? 6 months? The lower the better!

Is there an option to cover spouses/partners and children?

Many employees are excited about the option to cover their spouses/partners for equal amounts, also without medical underwriting! What about children? Not all insurance carriers offer these options.

What is the required survival period?

How long after your diagnosis do you have to live in order to collect the money? Is there an option to remove this requirement?

What options exist for Termination Age?

Do you have older employees? Long-Term Disability commonly ends at Age 65, and these individuals appreciate some protection also. Does the carrier offer plans only to Age 65? Age 70? Age 75?

What about partial payouts?

Does the policy pay a smaller percentage payout upon diagnosis of “non life threatening” conditions? For example, early-stage prostate cancer, or DCIS?

The need for Group Critical Illness coverage is clear, however navigating the vast network of insurance carriers and products can be daunting.

At Gryphon Benefits, we are experts in Group Critical Illness Insurance – contact us today to learn more and to implement the best Critical Illness program for your company!

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